Taking Stock: Investors Begin to Recalibrate Expectations

Amid a jarring mix of global growth warnings and broader systemic financial problems, investors are recalibrating their expectations for major stock indexes through the rest of the year.

U.S. stocks tumbled Thursday, following steep drops in European and Asian markets, as a mix of weak U.S. economic data and fresh concerns about European banks prompted a flight to safety. Adding to the grim tone, Morgan Stanley and Goldman Sachs...